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This article was updated on July 21, 2025, to correct broken links, remove outdated information, and add updated statistics.
When students head off to college, they take along their books and clothes -- but many are unprepared when it comes to their newfound freedom, and responsibilities when it comes to finances. BBB's 2024 Scam Tracker Risk Report found that people ages 18-24 had the second highest median dollar loss ($150) from scams and fraud, and employment scams were the riskiest scam type for people ages 18-34.
What you'll learn:
- What to know about all those credit card offers and how to stay out of debt.
- How to protect your personal information.
- Where to look for savings on everyday costs like food and books.
BBB has tips for future college freshman and their parents to help students build a foundation of sound financial habits.
Tips for students and their parents:
- Be responsible with credit and debit cards. Consider using a debit card for daily items and credit cards for unplanned expenses. This is the first step to building a credit history. Students should understand that interest rates, late fees, and other charges will impact the amount owed. When choosing a credit card, be sure to look at the annual fee, the interest rate, the grace period, and any late fees.
- Guard your personal information. Preventing identity theft is important both online and offline. Shred unnecessary documents that include personal information such as Social Security or bank account numbers. Go paperless to avoid opportunities for identity theft. Keep all printed account information (paper statements, passwords, debit/credit cards) in a safe, secure location. Never share your PIN with anyone, and regularly monitor financial accounts. Be sure you're securing all of your online accounts with strong passwords and use multi-factor authentication on your accounts and devices.
- Take advantage of student perks. Avoid spending extra money on food if you have a cafeteria or a meal plan. Before deciding on a plan, research the available options at your college, most of which will be much cheaper than outside meals. When you do go out, take advantage of any student discounts at businesses or venues.
- Pay less for textbooks. Research different websites and retailers to get the best deal on textbooks. When possible, buy used books at the campus bookstore and compare prices with online retailers like Amazon or eBay. Consider renting textbooks at your school's bookstore or from sites like Chegg.com. Remember to sell used books back at the end of the semester. Always research online retailers at BBB.org prior to purchase.
- Stick to a budget. Following a budget will help students stay on track with spending and financial goals. Parents can help by setting up a semester budget. Begin with income. Calculate how much will be available - either from parents, savings, a part-time job, financial aid, grants or loans, or other revenue sources. Include books, rent, food, entertainment, and other expenses. Remember to include a certain amount in your budget for emergency purposes.
- Start saving money now. Developing good saving habits early on will help students reap lifelong benefits. The earlier you save, the more time you have to take advantage of compounding interest.
- Understand the dangers of debt. Understand the importance of paying off debt in a timely and responsible manner. Know the basics of debt management: pay on time; pay more than the minimum payment due; avoid missed or late payments that result in costly late fees, higher interest rates, and negative marks on a credit report.
- Locate reputable credit counselors by contacting:
Do not succumb to a “too good to be true” solution. It is a sad fact of life that scam artists are always willing to prey on those who feel caught in a financial bind. College students are not immune from tempting “make hundreds of dollars, no experience necessary” employment schemes, enticing “guaranteed” loan offers, or unsolicited e-mails promising to reduce or eliminate burdensome debt. Check all offers at BBB.org.
More financial recommendations:
Changing existing behaviors for payments and purchases will help to keep our financial lives healthy. The following are recommendations for all consumers to follow:
- Use digital wallets to manage in-store and online payments. The technology encrypts and tokenizes data, so if it is stolen, it is useless information to the criminals.
- Consumers need to adopt a zero-trust contact policy. The only acceptable action when receiving unexpected contact with a potential imposter is to exhibit zero trust.
- Turn on two-factor authentication wherever possible and secure your devices. Enabling two-factor authentication on sites that have that capability. Guard the one-time passcodes closely by not divulging them via text or phone call. For sites without two-factor authentication, use strong passwords or a password manager to secure overly complex and varying passwords on accounts.
- Secure online and mobile devices by instituting a screen lock, encrypting data stored on the devices, avoiding public Wi-Fi, and/or using a VPN, and installing anti-malware. Anti-malware protection is essential for all devices.
- Place a security freeze on credit reports. If you have been a victim of a data breach that has exposed sensitive, personally identifiable information, placing a freeze on your credit reports can prevent anyone else from opening one in your name and there is no cost to initiate.
- Sign up for account alerts. A variety of financial service providers, including banks, credit card companies, and brokerages, provide customers with the option to receive notifications of suspicious activity. Don’t forget to notate what you signed up for and store the number in your phone to avoid confusion with phishing text messages or calls.
- Keep financial account contact information updated. Consumers often forget to update new addresses and phone numbers with their financial institutions and lenders. Remember: You cannot receive a fraud alert if your new number hasn’t been updated.
For more information
Read 7 Scams for College Students to Avoid and 9 ways for students to avoid ID theft on campus.
Find more back-to-school tips from BBB.
Contact your local BBB if you are unsure of something that could possibly be a scam. You can look up and report scams to BBB Scam Tracker.